Section 7604. Public motor vehicle liability security fund

(a) The purpose
  of the public motor vehicle liability security fund  is  to  secure  the
  benefits  contemplated  by  section three hundred seventy of the vehicle
  and traffic law in those cases where a policy of insurance or  corporate
  surety  bond, therein described, of a solvent and responsible insurer is
  accepted by the commissioner of motor vehicles as a compliance with such
  section. The fund shall be used to pay allowed claims of injured parties
  and policyholders under insurance policies or  surety  bonds,  remaining
  unpaid,  in  whole  or in part, by reason of the insurer's insolvency or
  its  inability  to  meet  its  insurance  obligations   (including   any
  obligation for the return of unearned premiums) provided the insurer has
  made payments to the fund as required by subsection (b) hereof.
    (b) (1) Contributions to this fund shall be determined on the basis of
  net direct written premiums on insurance policies or surety bonds issued
  to meet the requirements of section three hundred seventy of the vehicle
  and traffic law.
    (2)  Every  insurer  issuing  such  policies or bonds, upon filing its
  quarterly return pursuant to section seven thousand six hundred five  of
  this  article,  shall  pay into the fund three percent of its net direct
  written premiums as shown for the period covered by such return.